Memecoin craze continues in the crypto money market without slowing down. Former US President Donald Trump launched his memecoin three days before the presidential oath ceremony. This Token, Trump, had a big fluctuation in a short time. However, Trump, as well as his wife Melania Trump and even the priest at the opening ceremony joined this fury.
What is Memecoin and why popular?
Memecoins are often digital assets based on popular joke or cultural references on the Internet. One of the most well -known examples is Dogecoin, which was created in 2013. Dogecoin is one of the rare Memecoins with a block chain of Bitcoin.
Most new Memecoin are called “token ve and work on an existing block chain. This makes them much easier to develop them technically. The main purpose of Memecoins is speculation. Users try to make big gains by buying and selling these tokens in the hope that their prices will rise rapidly.
Is it a big earning potential or a risky investment?
Although Memecoins sometimes make big gains, most investors are damaged. These coins usually exposed to manipulative operations such as pump and release (pump and dump) or rug pulp. Developers promote the project on social media by keeping most of the tokens in their hands and raise the price. Then they suddenly sell all the tokens in their hands to cause the price to collapse.
Legal arrangements against such frauds are quite limited. Carol Alexander, Professor of Finance from the University of Sussex, compare this to the NFT balloon. People continue to turn to speculative investments, such as digital monkey visuals previously sold for millions of dollars.
Trump and Memecoin craze
Trump is among the names that participate in the memecoin craze. Trump Token, which he initiated as part of the election campaign, is a speculative investment instrument as well as a political support show.
Trump’s move is likened to Fan Tokens used by sports teams. However, one of the biggest debates surrounding the Trump Token is that Trump has one of the organizations that earn revenue from the token trading fees. This brings with it the allegations of conflict of interest.
Those involved in this fury
Among those who participated in the memecoin craze are interesting stories. New Zealandan artist Andy Ayrey, with artificial intelligence, drew attention to the unexpectedly involved in the Memecoin market. The interaction of the boat with crypto accounts on social media GoatseIt caused him to form a memecoin named. Token, which received great attention in a short time, in a month 1.2 billion dollarshas reached the market value.
A similar process took place for another Memecoin called Fartcoin. Humor -themed Coin, which spreads on social media, attracted the attention of investors and experienced a great rise. Fartcoin’s market value For $ 2.3 billionup to. However, the lack of liquidity makes it difficult for such tokens to make real profits. Ayrey, investors are turning to speculative purchases, but most of these coins that it swells like a balloon and quickly extinguishesindicates.
Who earns from Memecoins?
The biggest gains in the market are usually Professional investors and corporate investors with large transaction volumes are obtained. Individual investors are often damaged by these rapid price movements.
According to Alexander, the biggest driving force of Memecoin craze, Young investors acting at the desire to make quick money. Since the crypto money market is largely based on speculation, the popularity of such investment instruments is increasing day by day. However, most of these high -risk investments result in major losses rather than major earnings.
